Globally, peanut is an important oilseed crop, which is cultivated under different agro-climatic zones. Soil salinity is one of the major constraints in peanut cultivation. Therefore, to understand the physio-biochemical mechanisms imparting salinity stress, four transgenic peanut lines (cv. GG20) already developed and confirmed by our lab, having bacterial mannitol dehydrogenase gene (mtlD), were subjected to different levels of salinity stresses (1, 2 and 3 dS m -1 ) in pots under containment facility. Further, these lines were also characterized for various physio-biochemical parameters at flowering, pegging and pod formation stages. All the transgenic lines recorded significantly higher mannitol dehydrogenase (MTD) activity and mannitol accumulation than the wild type (WT). Under salinity stress, significantly higher levels of superoxide dismutase, catalase, guaiacol peroxidase, ascorbate peroxidase, glutathione reductase activities, while significantly lower levels of H 2 O 2 and malondialdehyde contents, were recorded in the transgenics compared to WT. Similarly, significantly higher ascorbic acid and relative water content (RWC) were recorded in transgenic lines. The MTD activity showed positive correlation with various antioxidant enzymes, growth parameters and RWC, while negative correlation was recorded with H 2 O 2 and malondialdehyde content at most of the plant growth stages. The mtlD transgenic peanut lines under pot conditions were found maintaining lower oxidative injuries, indicating amelioration of salinity-induced oxidative stress by enhanced protection mechanisms via mannitol accumulation and antioxidative responses. The best lines identified (MTD1 and MTD4) may be used further as prebreeding source for imparting salinity stress tolerance in peanut. Besides, these lines may also be tested under openfield trials for release as salt-tolerant variety.